In his comments during a seminar sponsored by the American Chamber of Commerce titled ?The Impact of War with Iraq on the Dominican Economy?, US Ambassador Hans Hertell told reporters he felt the conflict would not have any long-lasting effects on the Dominican Republic. Hertell said that while tourism and commercial flights were possible areas for decreased activity, he believed that any loss of business would be short-lived. The ambassador pointed out, however, that hotel occupancy is currently up and that there have not been any massive cancellations as a result of the war under way.
Ambassador Hertell also showed his appreciation to President Mej?a for his decision to join the coalition of states that wish to contribute to a new and more democratic Iraq.
At the same seminar, DR1?s Frederic Emam-Zade told the audience that if tourism were to be seriously affected by the war, the country could lose as many as 19,000 related jobs. However, the economist said, the country was much less vulnerable now than it was in the 1991 Gulf War.
Pedro Pablo Cabral, the former head of Shell?s operations in the DR, told the group that the two areas in which effects may be felt were tourism and oil. He pointed out that in 2002 the DR paid US$1.32 billion for the oil it imported at an average price of US$27.25 per barrel. Yesterday, after a week of declining prices, a barrel of oil was being quoted at US$27.97.
In order to weather the situation, Cabral suggested that the government take steps to bolster the tourism sector, and to increase exports by reducing taxes.
Johnny Bernal, the head of the Asonahores, the leading hotel association, said that the government had adopted a proactive stance, along with the private sector, to face up to the current situation. Through new ad campaigns, the hotels have been able to maintain occupancy rates and have attracted new clients. By directing their advertisements to closer markets in the US and Canada, and by taking advantage of the fare wars between the airlines, occupancy has been satisfactory over recent months. According to Bernal, ?Right now, up to today, we have not detected any worrisome signs of cancellations in the hotels?.